Guidance on CGT Property Returns

HMRC has published guidance in the capital gains tax (CGT) manual for individuals, trustees, personal representatives, and agents who use HMRC’s online service to report and pay CGT on UK property gains.

Note there are some differences in terms of payment and reporting depending on whether the individual is UK resident or not UK resident.

UK residents

Broadly, from 6 April 2020, UK residents, who make a disposal of UK residential property must use the CGT UK Property Account to report and pay to HMRC any CGT arising from the disposal:

• Within 30 days of disposing of the property if the completion date was between 6 April 2020 and 26 October 2021.

• Within 60 days of disposing of the property if the completion date was on or after 27 October 2021.

I’ll repeat this. Report AND Pay.

There is no need to report any disposal where there is no CGT liability (although it is possible to report on a voluntary basis).

So, if the gain is fully covered by the private residence exemption, annual exemption (currently £12,300), brought forward or current losses, or where a CGT relief applies which reduce the gain to nil, there will be no liability.

Non-UK residents

Non-UK residents must report all disposals of UK property to HMRC, even if there is no tax to pay or they have made a loss. This includes any disposal of residential or non-residential UK land and indirect disposals of UK property.

The guidance is very detailed and includes all of the information required to report the gain and pay the tax using HMRC’s CGT on property account, whether there has been one disposal or multiple disposals. It also includes information on mixed use properties, the interaction with investment bond chargeable event gains, and, where a CGT relief, for example, business asset disposal relief, applies.